Are Title Loans Legal in Illinois?

Daniel Joelson

Daniel Joelson

Total Posts: 579

Published Date: January 20, 2023

Daniel Joelson has been in the consumer finance space since 1994, he has helped to develop underwriting manuals for the financial sector. With a vast amount of Knowledge in consumer finance, he has been writing articles for all types of loans. With his knowledge, he is able to help many people to answer different financial problems.

Legal Title Loans in Illinois

Title loans are no longer an option in Illinois, as the laws have changed, but this article will help you to understand how title loans used to work in Illinois, and there may be an option for them in the future.

Title loans are known to be short-term or highly secured loans with high interest. These loans require you to hand over your car or vehicle title to the lender in order to get instant cash. In case you default on the loan, then there is a 100% chance that the lender can repossess your vehicle, sell it, and put forward the proceeds that you owe to him. 

These loans are a great option for people who have low credit scores or no credit history because they are unable to get their hands on traditional or conventional loans. However, it is important to be very sure of these Title Loans in Illinois as you can easily lose your vehicle if you don’t repay the borrowed money on time. 

There is only a handful of restrictions in Illinois, but these loans are legal in it. Thus, if you are living in this state, then you can take a sigh of relief and prepare yourself to get the loan amount. 

Know about the auto title loan and their interest in Illinois 

No wonder getting online auto title loans comes with some risks, but they are better than traditional loans. They are convenient to get and allow you to be safe from uneven financial situations. These loans can get taken by keeping your vehicle as collateral or against the vehicle title. Also, the process of getting them is very straightforward, which makes everything sorted. 

But there are some regulations created or designed in order to protect the borrower from any kind of financial ruin. Therefore, the interest rate on these loans can be between 25% – 50% or depending on the lender. But no lender can charge around 90% from any borrower on their loan amount. This keeps the borrower safe from any kind of issues later. 

Are title loans legal in Illinois
Are auto title loans legal in Illinois?

Refinancing auto title loans in Illinois 

There are many states where collateral loans or auto title loans are legal. Thus, there is also a possibility of refinancing auto title loans in the same states. For instance, if your title loan is known to be due, but you are facing difficulty paying it during those times, you only pay the interest.

In such a case, you can ask your lender to refinance your title loan. This can work in your favor and allow you to save your asset, which is your vehicle, from being repossessed. Refinancing is the best method where you can get a new loan to get rid of the old one. However, there are different terms and conditions of the lender which you need to follow. 

Auto title loans and repossession of your vehicle 

No wonder if you are getting auto title loans, then there is a risk of getting your vehicle repossessed. However, out of six vehicles offered as collateral, only one gets repossessed due to default. Defaulting on your title loan or collateral loan means when you miss a payment or don’t adhere to the decided requirements of the loan taken, like the maintenance of your car insurance. 

In this case, the lender can easily repossess your vehicle or car, sell it, and use the amount to pay off the balance of your loan. However, you can always get out of such situations if you are fully aware of it and opt for refinancing the loan. Otherwise, before your vehicle is sold, you can easily get it back by paying off the complete loan, or according to the laws of the state and lender, you can pay around 30% to 50% of the original loan balance by catching up on the missed loan payments. 


It is always advisable never to take Title Loans in Illinois if you are not in dire need of them. This will ensure that you and your vehicle are safe to the most. Also, if you are confused, then loans are legal in Illinois, and you can always choose them over traditional loans if you have a low credit score or want instant cash to get over your financial issues. 

This is the best loan solution that can make things easy for you the most. The above-mentioned information related to title loans will help you make a wise decision, TFC Title Loans are here to help you. 


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DISCLAIMER: As our policy to make sure you know what we do and what are our limitations, we offer you these disclaimers. We are NOT A LENDER and we do not make short term cash loans or credit decisions. We are a referral service and work only with licensed lenders/brokers.

We may act as the broker for the loan and may not be the direct lender. Loan proceeds are intended primarily for personal, family and household purposes. We do not offer or service student loans.

*Loan amounts by the lenders vary based on your vehicle and your ability to repay the loan.

*Since we do not lend money directly we cannot offer you a solicitation for a loan, except in the state of California. In all other serviced states we WILL match you with a lender based on the information you provide on this website. We will not charge you for this service and our service is not available in all states. States that are serviced by this Web Site may change from time to time and without notice. Personal Unsecured Loans and Auto Title Loans are not available in all states and all areas.

*Auto Title Loan companies typically do not have pre-payment penalties, but we cannot guarantee that every lender meets this standard. Small Business Loans typically do have pre-payment penalties and occasionally will use your car as collateral to secure the loan.

*All lenders are responsible for their own interest rates and payment terms. TFC Title Loans has no control over these rates or payments. Use of the work competitive or reasonable does not mean affordable and borrowers should use their own discretion when working directly with the lender.

*The amount of people who applied for a loan and we helped and those who received a loan is not the same. We cannot guarantee we will find a lender who will fund you.Just because you give us information on this web site, in no way do we guarantee you will be approved for a car title loan or any other type of loan. Not all lenders can provide loan amounts you may see on this web site because loan amounts are limited by state law and/or the lender. Some lenders may require you to use a GPS locator device on your car, active all the time. They may or may not pay for this or charge you for this. This is up to the lender and we have no control over this policy of the lender. Typically larger loans or higher risk loans use a GPS.

*In some circumstances faxing may be required. Use of your cell phone to receive updates is optional.

*Car Title Loans are expensive and you may have other ways to get funding that is less expensive. These types of loans are meant to provide you with short term financing to solve immediate cash needs and should not be considered a long term solution. Residents of some states may not be eligible for a loan. Rejections for loans are not disclosed to our firm and you may want to contact the lender directly.

*Car Title Loan lenders are usually licensed by the State in which you reside. You should consult directly with these regulatory agencies to make sure your lender is licensed and in compliance. These agencies are there to protect you and we advise making sure any lender you receive money from is fully licensed.

*Trading Financial Credit, LLC dba TFC Title Loans, Car Title Loans California, Dineromax. If you are using a screen reader and are having problems using this website, please give us a call at 1-844-242-3543 for immediate assistance.

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